Buying a Car vs e-Hailing

Owning your own car may be one of your long-term financial goals, but with better accessibility to e-hailing services like Uber and Bolt, you might feel like owning a vehicle isn’t necessary. In the e-hailing vs owning your own vehicle debate, there isn’t one right answer.  You’ll have to determine which option works best for you.

Look at our list of considerations when deciding between buying your own car vs using e-hailing services:

Cost per kilometer

Car: When looking to purchase a vehicle, make sure that you’re not spending more than 25% of your gross monthly income on vehicle financing. Remember that the more your car costs, the further you need to travel to make car ownership the better financial decision. You’ll also need to consider the operating costs of owning a vehicle, taking into account the price of petrol and car insurance to determine the true costs involved.

e-Hailing: Distance is an important factor to consider when deciding whether to ride-hail. If you don’t have to travel too far or too frequently, then using Uber and Bolt should be more affordable in the long run.

Time and accessibility

Car: The biggest benefit of having a car is the convenience and flexibility. If you live in a small town or often travel to remote areas, then e-hailing is probably not a viable alternative to owning a car.

e-Hailing: Depending on where and when you use the service, availability and waiting times will vary. In major centres and on popular routes, you might only wait a minute or two. If you travel to or from a place where there aren't many Uber or Bolt drivers, you may need to add some time to your trips, which may become time-consuming and inconvenient.

Lifestyle needs

Car: Having your own car is always convenient. If you pop to the shops regularly or transport your children to school and extramural activities, then having your own vehicle makes sense. You may also want a car for emergency trips if, for example, you have a loved one who might need assistance late at night.

e-Hailing: If you’re single, live alone or don’t need to travel very far for work and school, then calling an Uber could be more convenient. An added bonus is that you don’t have to worry about secure parking.

For more car-related tips, read these blogs:

-        How to buy a car

-        Everything you need to know about vehicle finance